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Perspectives: Business Opportunities and Social Media
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Perspectives: Business Opportunities and Social Media


a look at challenges, measurement, business value and the social web...the changes we can dream for better business

a look at challenges, measurement, business value and the social web...the changes we can dream for better business

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  • The shape of the online universe. This image shows the hierarchical structure of the Internet, based on the connections between individual nodes (such as service providers). Three distinct regions are apparent: an inner core of highly connected nodes, an outer periphery of isolated networks, and a mantle-like mass of peer-connected nodes. The bigger the node, the more connections it has. Those nodes that are closest to the center are connected to more well-connected nodes than are those on the periphery. The core: At the center of the Internet are about 80 core nodes through which most traffic flows. Remove the core, and 70 percent of the other nodes are still able to function through peer-to-peer connections.
  • Before we dive into Dell’s Principles, let’s take a look at where Dell started with social media and where we are today.
  • August 2006Blog Outreach Expands Beyond Tech SupportEngagement with anyone who commented about the company. Business model and other issues considered.August 2006Blog Outreach Expands Beyond Tech SupportEngagement with anyone who commented about the company. Business model and other issues considered.June 2007Dell joins TwitterWhy don’t we reach out and help bloggers with tech support issues?February 2008Twitter ExpandedStart experimenting with Twitter for business– another venue to help customers, but also thanking Dell customers. Outreach leads to some Twitters asking for help on purchases.May 2008Dell Outlet Achieves $0.5M in Sales via TwitterCommunity team active on TwitterJune 2009 $2M+ Sales via TwitterDell outlet on Twitter surpasses $2 million in sales with another $1 million dollars in sales at 2009Dell TechCenterA Collaborative Community for Datacenter pros grows by 400%December 2009Huffington Post BlogDell’s VP of Social Media and Community, Manish Mehta, begins blogging at Huffington PostJune 2009Global Twitter Revenues of $6.5 M Community across the social web =3.5 million direct customer connections
  • We have put in place arguably one of the most robust social media and community curriculums. We continue to evolve the program offerings. It is global, with unconferences like this being held in the UK, China and India last year and more planned this year.More than 15 courses are now available, and there are more in the worksAnd, again, an amazing thirst for this with more than 5,000 Dell employees taking at least one course; more than 2000 Dell certified professionals have completed 4 courses/8+ hoursThat’s commitment and I say Thank YOU!


  • 1. Perspectives about Business: Opportunities in Social MediaRichard Binhammer, Director, Social Media and Community 1 ConfidentialTrueMedia Social Media Workshop, August 2011 Global Marketing
  • 2. go for a drive Key enablers and strategies RethinkRelationships Business and Technology Global Marketing
  • 3. A Revisionist and Simplistic Look atEvolution of Business Organizationsand Marketing…. 3 Global Marketing
  • 4. Business and Technology: aims for efficient organization of work through specialization of labor 1776, Adam Smith, Wealth of Nations4 Global Marketing
  • 5. Business Management:Getting people togetherto accomplish desiredgoals & objectives usingavailable resourcesefficiently andeffectively.5 Global Marketing
  • 6. Bureaucracy: The Boss’ Another Equal or Colleague or The Boss Corporate a rational, efficient Corporate Competitor Competitor method of organization… Boss Assistant hierarchical authority & functional Direct Direct Direct Report specialization. Report, Specialty A Report, Specialty B Specialty C6 Global Marketing
  • 7. Marketing:Evolved fromproduction &efficiency models usedin business to a sellingorientation, wheremarketing deals withthe needs, wants anddemands of customers7 Global Marketing
  • 8. TremendousReachMass MarketsCustomerSegments Global Marketing
  • 9. Marketing and Business: more efficient & productive… All for you!9 Global Marketing
  • 10. Creation ofIconic Brands10 Global Marketing
  • 11. Business Success = Dominance and Power11 Global Marketing
  • 12. 75 Year Difference in Business Life Expectancy since 193612 Source: Deloitte Report: John Hagel Global Marketing
  • 13. Source: Mary Meeker, 2010 Internet Trends Global Marketing
  • 14. 14 Source: Shanghai Web designers via Neville Hobson Global Marketing
  • 15. Global Conversations Listen. Engage. Act Global Marketing
  • 17. Internet: Unlike other technologies, the Web was unpredictable; opened more opportunities to change perspectives anywhere it reached17 Global Marketing
  • 18. Something is Happening. Opportunities to dream? A dream for brands and business organizations18 Global Marketing
  • 19. Weremarkets reallyalwaysrelationshipsandconversations?19 Global Marketing
  • 20. If Markets are Conversations… • “Networked markets are beginning to self- organize faster than the companies that have traditionally served them. • Thanks to the web, markets are becoming better informed, smarter, and more demanding of qualities missing from most business organizations. Markets are conversations. • Markets consist of human beings, not demographic sectors. Conversations among human beings sound human. They are conducted in a human voice, Whether delivering information, opinions, perspectives, dissenting arguments or humorous asides, the human voice is typically open, natural, uncontrived.”20 Source: Cluetrain Manifesto Global Marketing
  • 21. …..But (Social Media) Conversations areNot Just Marketing• In both internetworked markets and among intranetworked employees, people are speaking to each other in a powerful new way.• These networked conversations are enabling powerful new forms of social organization and knowledge exchange to emerge.• As a result, markets are getting smarter, more informed, more organized. (not siloed or segmented the way we normally think)• Participation in a networked market changes people fundamentally.21 • Source: Cluetrain Manifesto Global Marketing
  • 22. Conversations are conversations not Business segments Where to find you Share with others how & why you have great products/services …………….and more22 Global Marketing Graphic thanks to @Gapingvoid
  • 23. Don’t Look, Listen or Touch This is not a strategy that works.23 Global Marketing
  • 24. The world around us is changing Control is not as successful as influence companies that embrace this the fastest will win • Disintermediation between the customer and the expert is happening already • Users spending more time across the web engaging – beyond company’s website • Customers trust their peers more than anyone else • Traditional methods are not scaling; Does Social Media?24 Global Marketing
  • 25. Dell’s Social Media and Community Journey25 Global Marketing
  • 26. Dell’s Direct & Online Heritage: Critical Enablers Leader in online First company to frictionless First to sell complex hit $1M a day in commerce from configurable items online revenue order to delivery One of the first One of the first companies to Early adopter of to launch online social media discussion forums launch online support
  • 27. Before the Social Web: Our Online Perspective Our Communities 27 Global Marketing
  • 28. Five years of experiments and experience December 2006 October 2007 May 2008 June 2009 February 2006 Dell named #1 most Ratings and Michael Dell quote in Business Week Dell Outlet achieves Global Twitter social brand in Michael Dell Asks reviews on Jeff Jarvis story quote, “These conversations are $0.5M in sales via Twitter revenues of $6.5 M ranking of 100 top Why don’t we reach out and help going to occur whether you like it or not. Do you bloggers with tech support issues? want to be part of that or not? My argument is you Community team active on Twitter brands absolutely do. You can learn from them. You can Small Business improve your reaction time. And you can be a blog launched August 2006 better company by listening and being involved in Blog outreach that conversation.” expands beyond February 2007 March 2008 March 2010 tech support Accepted Solutions China Micro- IdeaStorm Launched January 2009 June 2009 launched on Community Blogging A voting based site allowing Dell Organizes in to $2M+ Sales customers and others to submit Dell France begins Online 4 customer focused ideas for Dell. Community Outreach via Twitter Social Media Listening business units Command Center 2006 2007 2008 2009 2010 2011 Dell Social Media and Community University July 2006 launched/5,000 team Direct2Dell launched June 2007 April 2008 2009 members trained by end of year Today Direct2Dell exists in Dell joins Twitter Inside IT launched Dell TechCenter English, Spanish, Norwegian, January (Aug.) Blog focused on business Japanese and Chinese. Dell launches 2008 customers, and Cloud Dell aligns Computing. Altimeter recognizes Dell with EmployeeStorm Spring 2009 December 2009 “Open Leadership Award for Internal Blogs organization Launched for for success Some Members of Huffington Post BlogInnovation and Execution” Community and (Oct.) Employees. Conversations DellApril 2006 January 2007 deployed within each launchesTech support StudioDell launched of the new Dell B2B pages Facebookoutreach to blogs Dell’s video and podcast February 2008 Business units (Jun.) site, with helpful tips and tricks. Eventually expanding November 2007 Twitter expanded this into the YouTube channel DellShares launched making sharing easier. The first investor relations blog by June 2008 a public company. Channel blog 28 launched Global Marketing
  • 29. Recognizing & Aligning a Powerful Ecosystem External Communities Our Communities Team Members 29 Confidential Global Marketing
  • 30. Listen, Engage, Act.It’s at the heart of all strategies…But How to Scale? Think of it as a tool, not a channel Global Marketing
  • 31. Listening to Be A Better Business, Across the Business31 Confidential From 4,000 posts/day to 26,000 posts/day 3/21/2011 Global Marketing
  • 32. June 2005 – August 2006: Several Online Issues = Offlinetoo 32 Global Marketing
  • 33. Customers inneed are criticalopportunitiesSocial Media givesthem voice & youopportunities Global Marketing
  • 34. @DellCares Across the Web Generates Positive ConnectionsThe Customer: Model Supplies Sales, Followers: 60,000+Issue/Resolution: The customer tweeted in regards to an LCD issue w/her PC on 4/18 to her friends.@DellCares identified the customer was in need of assistance and responded on 4/19, The issue was resolvedon 4/29. MSD tweets her a thank you on 5/25, which she responds to immediately. … Dell … delighting the Customer Customer voices Listens, Engages whose following retweets to 150k+ users frustration… and Resolves issue… Michael Dell jumps in… Model Supplies raves @ModelSupplies Thanks for contacting Youre very welcome! @MichaelDell Thank you @dellcares and for positive feedback too. for the fantastic service - and for the reminder of Thrilled to hear you are a happy Dell customer! things still to do! x0x 7:43 PM May 25th via web 6:14 Confidential 25th via web 34 PM May Global Marketing
  • 35. Surprising Sometimes!Where your fans are……and what they share Special Thanks to BlaM4C and Marshalus & more than 4000 customers before Dell was on Flickr Global Marketing
  • 36. New opportunities Further our Direct connections with Quality Interaction: No tricks or gimmicks customers Relationship Marketing:Link Online:Behavioral Targeting and Deal Posting36 Global Marketing
  • 37. Aggregation of WebContent, Rich Media Global Marketing
  • 38. CampaignsScale, but arecapital intensive.You can not buyfans & followersfor life … Global Marketing
  • 39. A Tool to be Leveraged Across the Fabric of aCompany: different functions, uses and valuesProduct Development Marketing Online Presence• Feedback Loop • Demand Forecast • Ratings & Reviews• Early Warning • Lead Generation • Communities• New Product • Message Reach • Customer Stories Ideation Sales Customer Service Communication• Leads• Collaboration • Listening • Rich Media• Thought Leadership • Support Widgets • Brand Reputation• Blogs • Outreach • Influence • ReputationMarketing Global
  • 40. Customer Connected Employeesare your company’s rock stars40 Global Marketing
  • 41. Internal Social Networks • Dell is using Chatter to increase cross-departmental team collaboration • Over 90,000 Dell employees quickly and easily collaborate around documents and information like sales opportunities, team projects and campaigns • Fosters relationships • A hybrid of Twitter, Facebook, Sina, Ren- Ren, Orkut41 Global Marketing
  • 42. Empowering Employees:Social Media & Community University Principles Policy Governance Training & tools Global Marketing
  • 43. Empowering Dell Team Members Certified: 2357 Unique Team Members Trained: 525443 Global Marketing
  • 44. Meanwhile …Back at the Office Global Marketing
  • 45. They are asking aboutthe social webinfrastructure Global Marketing
  • 46. Starting Down a New Road, in a Vehicle, yet to be proven Even today, the Infrastructure is evolving46 Global Marketing
  • 47. Authority Exchange Community 47 Global Marketing
  • 48. Where is the ROI Business Value of Social Media48 Global Marketing
  • 49. • Where customers are  Primary social media focus• Do they like/love you?  Sentiment• What are they saying  Listen, learn and improve business• They recommend you  Your fans deserve appreciation• Share links with friends  Advocates deserve attention too• Rating & Reviews  Inform your products• Publicly complaining  Showing you care about customer• Going to your website  Purchase or deeper interest Identify your business objective Choose the metrics that help you measure & evolve 49 Global Marketing
  • 50. SM  B2C & B2B50 Global Marketing
  • 51. Yes Virginia, there is ROI Business Value: It ismeasurable in many forms, there is not 1 number … Global Marketing
  • 52. Look across the entire customer lifecycle. It can beused everywhere … • Insight: Social media improves Dell’s reach and share of voice • Insight: SM keeps customers engaged, provides solutions and improves loyalty. • Insight: Established causality between social media activity and purchase Our External Communities Communities• Insight: Social media based support improves sentiment and correlates with higher revenue • Insight: Social Media provides high Business Value and contributes to demand gen vehicle Global Marketing
  • 53. Are Businesses Less Machine and more Networked Organism? Human Organizations53 Global Marketing
  • 54. It’s about pragmatic approachesSmart business fundamentals never change Global Marketing
  • 55. Connected and Lit Up55 Confidential Global Marketing
  • 56. you gonnamiss the old car? Global Marketing
  • 57. Thank You